MRI Interventions, Inc. Obtains a $17.5 Million Strategic Investment from PTC Therapeutics, Inc. and Petrichor Healthcare Capital Management

Transaction follows 43% growth in fourth quarter revenue

IRVINE, Calif., Jan. 13, 2020 (GLOBE NEWSWIRE) -- MRI Interventions, Inc. (Nasdaq: MRIC) (the “Company”), a leading platform neurosurgery company, today announced preliminary and unaudited results for the quarter ended December 31, 2019. Additionally, the Company announced a $17.5 million strategic investment from PTC Therapeutics, Inc. (“PTC”) and Petrichor Healthcare Capital Management (“Petrichor”).

Revenue for the quarter ended December 31, 2019 is expected to be approximately $3.2 million, a new quarterly revenue record and an increase of 43% from $2.3 million in the prior year fourth quarter. For the fiscal year ended December 31, 2019, revenue is expected to be approximately $11.2 million, compared with $7.4 million in 2018, an increase of 53%. These increases resulted in part from the completion of 801 cases utilizing the Company’s ClearPoint System or its clinical team’s services in 2019, as compared with 670 cases having been completed in 2018. Cash used in operations for the quarter ended December 31, 2019 is expected to improve to approximately $465,000, compared with $600,000 used in the 2018 fourth quarter, and for the fiscal year ended December 31, 2019, is expected to improve to approximately $2.9 million, compared with $4.6 million in 2018.

Under the terms of the investment and subject to certain customary closing conditions, PTC will fund a $10.0 million note and Petrichor will fund a $7.5 million note. The Company anticipates that the transaction will close on or before February 29, 2020. The Company intends to use the net proceeds from the sale of the notes to repay in full its existing secured indebtedness, and to fund product commercialization, internal research and development, and general corporate requirements.

In addition, the securities purchase agreement provides the Company with the right, but not the obligation, to issue to Petrichor up to an aggregate principal amount of $15.0 million of secured convertible notes within the initial 24 months following the signing of such securities purchase agreement.

Joe Burnett, the Company’s President and CEO, commented, “In addition to yet another record quarter for revenue, we are thrilled to expand our relationship with PTC, and to build a relationship with Petrichor, two prestigious and collaborative partners. We believe that gaining access to $17.5 million in working capital and being able to draw on an additional $15 million, if needed, will allow us to continue prioritizing topline revenue growth in the years ahead. We anticipate that this capital will allow us to take full advantage of the opportunities outlined in our four-pillar growth strategy, especially through partnerships in our biologics and drug delivery business.”